CSR Report 2013 (for PDF)

2013 SUSTAINABILITY REPORT

Corporate Social Responsibility

2013 SUSTAINABILITY REPORT

Corporate Social Responsibility

MESSAGE FROM THE PRESIDENT AND CEO

All Yokohama Groups have the same policy under

GD100.

Yokohama offers BluEarth – our eco-energy tires for

many people have concern to save gasoline. YTPI not

only manufacture products like BluEarth, but also

promote environment-centered activities, like this

year 2013, we had our Forever Forest 6. In Forever

Forest, people come together with their families to

participate to our tree-planting project, considering

its importance in the environment.

People here already have concern for the

environment. Maybe it is time that we should do it in

a different way.

For 2014, we need additional activities not just within

our company. It's time to go outside and make new

friends. Inviting people to come is good, but going

out for them is better.

We must also be able to create activities and events

outside – I know Filipinos love events! – especially

for children. If we invite kids, maybe they can also

bring their parents: that way, they will remember our

company. It will be good for them so that's good for

us.

“Consider what we can do.”Aside from the Forever Forest, we must also promote

new tree-planting activities like the Green Curtain.

We can teach elementary students the benefits of

Green Curtain – shade, cooler environment even

without air conditioning, etc. We should study what

particular plant is good for the Green Curtain project

and bring seedlings. Then we can show them how to

create their own Forever Forest or Green Curtain

after classes.

Our message must be clear to all people – to our

customers, even visitors, suppliers, and contractors.

We must promote our environmental advocacy well

and send a good message to them. Yes, our eco tires

are expensive, but we must try a different approach to

help our customers understand our product and

educate them about our new tires.

Our employees already know how environment &

safety-minded our company is.

One of my targets is the organic solvent – we are still

using a lot and it costs us too much.

2 Sustainability Report 2013

It is my concern to find an internal approach for our

efforts to save energy and cut fuel costs:

Try to reduce operational use of organic solvent

(for cap tread).

Reduce energy consumption through EnerCon

activities

Reduce cost of fuel imports by reducing power

consumption because like in Japan, fuel is

expensive in the Philippines.

The challenge is, each person must consider how to

save energy or the environment. I know it's difficult

to make big efforts, but little actions to create

awareness already have big benefits.

My other concern is the new development of

commercial buildings like hospital and offices round

our area – we have to make a plan and invest to find

out how to contain or minimize the effects (noise or

smell), even though we exist in an industrial park. We

must consider how to make a good relationship with

our neighbors.

2013 highlights “Show you care. Give a share.”

through feeding program, outreach, and medical

activities conducted. Programs focused on

environment must be increased for the community.

Consider what we can do. We must have the latest

information from local communities so we will be

able to listen, let us know their concerns, and answer

them immediately to maintain a good relationship.

Let us introduce new activities or change some –

every year we should improve to help others.

Our environmental activities must be promoted to

other companies or stakeholders and so we can

explain the company's efforts to them and educate

them.

Tadashi SuzukiPresident and Chief Executive Officer

Yokohama Tire Philippines, Inc.

Reaching out to Society

Yokohama Tire Philippines, Inc. 3

CONTENTS

CSR MANAGEMENT: THE YTPI WAY 5

ABOUT YOKOHAMA TIRE PHILIPPINES, INC.

Corporate Profile

Manpower

Awards and Recognition

Soaring High: The West Plant Project

6

PRODUCT RESPONSIBILITY

Our Company’s Commitment to Quality

Initiatives towards Product Reliability

Sand in Tire: An Environmental Friendly Filler Option

10

ENVIRONMENTAL PERFORMANCE

Raw Material Consumption

Energy Consumption Efficiency

Waste Management

Initiatives towards Environmental Management

15

COMMUNITY DEVELOPMENT

Initiatives towards Community Development

20

SAFETY AND HEALTH 22

24

TECHNICAL WORKING GROUP (TWG)

About This Report

Our Stakeholders

27

MANPOWER DEVELOPMENT

Trainings and Seminars

Manpower Skills Level-up

Initiatives towards Corporate Culture

Labor-Management Council: Building PartnershipThrough Shared Responsibilities

4

Initiatives towards Safety and Health in the Workplace

Safety Performance for the Year 2013

Health through Awareness

Sustainability Report 2013

Important Note:This report is based on information available as of December 2013. Actual performance may differ by the time of the release of this publication.

Respective titles, job position and/or organizations, etc. refer to those at the time of reporting.

CSR PerspectiveGD100 Centenary of Yokohama Rubber Co., Ltd.

VisionEvoke a distinctive global identity in building corporate value and in building a strong market presence.

Basic Policy for Fulfilling VisionDeliver the best products at competitive prices and on time

Assert world-class strengths in technologies for protecting the environment

Foster a customer-oriented corporate culture that honors rigorous standards of corporate ethics

Producing Quality tires is our greatest pride. We are proud of our work and find satisfaction in seeing that tires we produce meet our customer’s exacting needs and high standard.

We aim to accomplish all these at the same time that we:a.) work to preserve and protect the environment and the Earth’s resourcesb.) develop the skills and potentials of our personnelc.) and employ our machines with the maximum efficiency and productivity

This is our Corporate Philosophy. It is a philosophy that we are confident will succeed and will contribute to the well being of all our stockholders and employees and to the economic development of the Philippines.

YTPI Mid-Term Vision

YTPI envisions itself as being a catalyst of sustainable and

most relevant CSR Programs to give back to the

community and people through committed partnerships.

CSR Vision Statement

CSR shall be based on thrust of Environmental Protection,

Education, Community Welfare and Services and Culture

of Respect for Individuals.

CSR is based on tripartite partnership of Company,

Employee and Community for Program Sustainability and

Involvement.

CSR shall promote a culture of volunteerism and

selflessness among all stakeholders to work together for

others.

CSR Mission Statement

Triple bottom line approach that concerns not only the

financial but also social and environmental aspects. We

believe that “Running a Good Business” does not only

focus on earning and profiting but also on the contribution

that we give to the society as well.

CSR Framework

Environmental

Financial

Corporate SocialResponsibility

Run a good business that will sustain livelihood of employees and support to the communities

Sustainability of goods and resources for the company without compromising the futuregenerations

Address the needs of the community by sharing of resources as our Corporate Responsibility

Corporate Philosophy

Social

CSR MANAGEMENT

Customer

InternalProcess

Learning &Growth

Financial

2012-2014 (GD100 Phase III)

High QualityMost reasonable price

in AsiaOn Time Delivery

Operational Efficiency / Eliminate capability restrictions(lead time, productivity)

PlanningMaterialHandling

Machine andUtilities

Production Inventory ShipmentOrder and capabilitymatch-up

Availability of financial resources

Develop competitivesuppliers

Reduction of ScrapStable, safe anduninterrupted utilities

Improvement of inventory managementinventory variance

Reduction of unshipped tires

Improve logisticscost

All Process: Elimination of MURA MUDA MURIImprove first-pass yield (no-rework)

Prompt delivering of services and information

Increase productivity (tires per person)

Improve energy efficiency

Planning

Develop multi-skilledemployees

Cost-awareness amongemployees

Motivated Employees

Improved leadership

Employee support servicesare properly delivered

Awareness of improvement(participation in improvement programs)

Culture of ContinuousImprovement

Culture ofCompliance

Simplify and enforce SOP

Full implementation of management systems

Good External relations

Maximize Use ofInformation Systems

Maximize use of informationsystems

Capacity Up

Phase 4 expansionrealization

Expand capacityto produce Eco Tires

Productionachievement per

customer spec

Quality Delivery Cost

EnvironmentQuality Delivery Cost

Safety Environment Man

Strong and Healthy Growth (60% increase sales by 2014 vs 2011)

YEAR 2013VISION

MISSION: STRATEGY: MOTTO:

“Think Future. Act Now”Quality at sourceStep Up Proactive Actions thru Effective Monitoring

Safe Plant andBest Quality Product


In its aim to be globally competitive, The Yokohama Rubber Company, Ltd. (YRC) partnered with JFE Shoji Trade

Corporation (formerly Kawasho Corporation) to establish its first tire manufacturing facility in Asia outside Japan. This

joint venture in April 30, 1996 created the subsidiary company named Yokohama Tire Philippines, Inc. (YTPI) and aimed

to produce “Yokohama” brand passenger car radial (PCR) and recreational vehicle (RV) tires for the global market.

Production for West Plant expansion has started in first quarter of 2013; new sizes and patterns are introduced to market which aims to

increase the sales in North America. However, it is noticeable that the production in 2013 has declined despite the initial production of

expansion.


Company Name:

Incorporation Date:

Address:

Shareholders:

Paid-up Capital:

Total Lot Area:

Total Building Area:


April 30, 1996

IE 5 Clark Freeport Zone, Philippines

Yokohama Rubber Co., Ltd. - 96.62%

JFE Shoji Trade Corporation - 3.38%

US $86.93 million2452,019 m

2230,028.27 m

President & CEO:

Number of Employees:

Plant Capacity per day:

Certifications:

Mr. Tadashi Suzuki

2,132

26,000 tires per day

OHSAS 18001:2007

ISO 14001:2004

ISO/TS 16949:2009

ISO 9001:2008

About the Company

Corporate Profile

Sustainability Report 20136

Annual Production OutputTire pcs (in Thousands)

1,000

2,000

4,000

6,000

7,000

8,000

3,000

5,000

0

993

1,472 1,641

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

1,685 1,6992,003

2,580

3,048

4,468

6,009

6,743

5,641

6,901 6,986

6,1345,664

Production History

Decrease in production is mainly due to

lower demand from Russia & Europe and

non-achievement of some orders which are

intended for North America due to some

delays during initial operations. Capacity

increase is anticipated to start by 2014 due

to full operations of Phase1 expansion;

growth is positively expected to continue

until 2016 due to full operations of Phase2.

In 2013, Yokohama Tire Philippines, Inc. produced an average of 18,000 tires per day. From a mix of 13 to 18 inches tire sizes, 93% are for

export sales around the globe, and 7% are sold locally .

North America22%

Europe23%

Asia21%

Russia16%

Philippines7%

South America6%

Oceania4%

Africa1%

Sales in PercentageExport

Local

93%

7%

Product Destination

Yokohama Tire Philippines, Inc. has started its initial production for

Plant Expansion-Phase1 in February 2013. Though it has resulted to

higher operating expenses due to high Production test and

Development cost during initial operations, this will have a favorable

effect on later periods because of increase in production capacity.

Financial performance of 2013 declined to 2% Operating Profit Margin

(OPM) mainly due to expenses related to expansion, net income

posted is only $0.5M compared to $14.6M of 2012. Eliminating the

effect of expansion, OPM will be 7.4% which is 10% higher compared

to audited result of 2012.

Improvement is expected in Year 2014 since Expansion-Phase I will run

at full capacity. Overall OPM will increase to 7% and average

production per day will be around 26,000 tires. However, 2015 OPM is

expected to decrease by 4% due to initial operations of Expansion-

Phase II. Like in 2013, higher operating cost is expected during initial

operations. Nevertheless, good financial performance is expected to

bounce back by Year 2016 because three manufacturing plants are

expected to run at full capacity where production per day will be

36,000 tires.

Net worth will continuously improve due to projected growth on sales

and due to expansion which will escalate the production capacity by

60%. Long-term loan payment for expansion will be fully paid in Year

2017 for Expansion-Phase I and Year 2020 for Expansion-Phase II.

100

200

300

400

(200)

(100)

0

194.63

264.15

(103.97) (100.96)

(180.42)

90.66

163.19 162.70

Balance Sheet(in Million $)

Assets Liabilities Equity

2011 2012 2013

100

200

300

400

0

288.46 268.95

8.50 14.59 0.46

Net Income(in Million $)

Sales Net Income

237.06

343.12

2%

4%

6%

8%

0

OPM

2%

7%

4%

OPM

Net Worth

Income Statement

Net Worth and Income Statement


2011 2012 2013

The West Plant project is another milestone in the

history of Yokohama Tire Philippines, Inc. (YTPI)

that was realized in 2013. The inaugural tire was

produced in February 7, 2013 at West Plant Phase I.

That same day marked the beginning of tire

production in the new facility. The event was made

even more meaningful by the presence of Mr.

Tadashi Suzuki, former General Manager of Tire

Global Production Division of Yokohama Rubber

Company, Ltd. (YRC) and now YTPI President and

CEO.

The expansion was expected to increase production with additional 4,000

tires per day until the end of 2013. Growth is expected to continue until

2016 upon completion of Phase 2. Tire produced from the West Plant will

be distributed primarily to the North American market.

Soaring Higher: The West Plant Project

ManpowerYTPI supports equal opportunity employment by

providing careers to a wide-range of individuals,

promoting equal opportunities, and nurturing diversity.

In line with the company's commitment to employee

excellence by developing the workforce, diversity is

viewed as a contributor to dynamism in the workplace

which is vital to the company's continuing expansion,

and as a factor for innovation which is essential in

providing our customers with high satisfaction in our

products.

About the Company

Number of Employees

500

1,000

2,000

1,500

2,500

0

437

493

527

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

542

553

585 76

2 942

1,52

1

1,67

5

1,67

5

1,69

5

1,78

0

1,98

4

2,08

0

2,13

2

EMPLOYMENT TREND

Recruitment


As a practitioner of equal opportunity employment, YTPI sources

its employees from various channels.In 2013, majority (39%) of

the hired applicants came from walk-ins, followed by employee

referrals (36%).

YTPI has also initiated the Dual Training System (DTS)

implementation with partner schools since 2013.

Under the Republic Act 7686, the DTS' main objective is to

enhance manpower education and training through an active

partnership between the business sector and technical-vocational

schools; thus, it bridges the gap between the industry's demands

and the unemployment rate of competent and job-fit graduates.

In 2013, DTS is strengthened in Region III by the TESDA Regional

Office, particularly in Clark Freeport Zone, and YTPI has been one

of the first companies to support this program. YTPI has deployed

a total no. of 73 DTS Trainees starting June to December 2013,

which might significantly increase in the future.

Walk In EmployeeReferal

Online AbsorbedContractor

Job Fair PreviousOJT

YTPIScholars

10

20

30

40

50

0

Sourcing Channels46 45

14

6 52 2

No. of Employees Hired

In line with promoting equal opportunity employment and

workforce diversity, YTPI has 2,067 regular employees out of its

2,132 total population. The workforce largely consists of male

employees (93.9%) who are mostly assigned in production and

technical work, while female employees (6.1%) are mostly given

administrative or clerical functions.

Only 0.3% of employees are within ages of 51-above; a higher

percentage of YTPI employees belong to younger age groups (from

20 - 30 and 31- 40). Majority of the employees are Team Members

(1,808) while 44 hold managerial positions.

Year 2013 marks an increase in YTPI workforce indicating our

company’s impact in creating opportunities to help raise the

employment rate in the Philippines. Majority of our employees are

residents of Region III (98%); the remainder comes from other

provinces (1.5%) and the National Capital Region (0.5%).

Workforce by Category

Workforce by Rank

Management

Supervisor

Team Learder

Team Member

0% 20% 40% 60% 80% 100%

2.1%44

12.5%266

0.7%14

84.8%1,808

Workforce by Status

Regular

Probationary

0% 20% 40% 60% 80% 100%

Workforce by Gender

Male

Female

0% 20% 40% 60% 80% 100%

93.9%2,001

6.1%131

97.0%2,067

3.0%65

Workforce by Region

Region I

Region III

NCR

Others

0% 20% 40% 60% 80% 100%

0.9%19

98.0%2,090

0.5%11

0.6%12

Workforce by Age

Age 20 to 30

Age 31 to 40

Age 41 to 50

Age 51 above

0% 20% 40% 60% 80% 100%

40.8%869

50.9%1,085

8.0%171

0.3%7

Awards and Recognition

YTPI received an Environmental Contribution Award from Toyota Motor Philippines Corporation

(TMPC) last April 4, 2014 in recognition to YTPI's Year 2013 energy conservation activities.

YTPI's VP and Assistant Plant Operations Division Manager, Mr. Juanito Arona, accepted the award thduring the 2014 Toyota Supplier Conference and the 14 Toyota Suppliers Club (TSC) General

YTPI Accepts Environmental Contribution Award

YTPI Receives 2012 APAC Perfect Quality Award from FIAT-Chrysler Group

On September 2013, YTPI received the 2012 APAC Perfect Quality Award from the FIAT-Chrysler

Group in recognition of the company's meeting the four specific requirements:

Supplier located in the Asia Pacific Region (APAC)

Perfect score on Quality evaluation and have no yard hold

Annual transaction volume of over US$1 million

Taking the initiative, being cooperative and responding swiftly

The award serves as an encouragement to all YTPI members to

continuously improve and be challenged to sustain and produce high-

quality products.

1.

2.

3.

4.

thThe “Yokohama Mixing Gilas” contends for the company in the 14

Annual Toyota Suppliers Club (TSC) Kaizen Competition held last

November 8, 2013. The team won the first runner-up for their

presentation dubbed as the “Mixing Scrap Reduction Improvement”.

YTPI is one of the companies invited by TSC to compete for Class A1

Category. The winners of the recent Small Group Activity (SGA) are

chosen to participate in the Kaizen competition.

YTPI Team Wins at Kaizen Competition

The tire that provides outstanding performance on a wide variety of road surfaces in winter.

The tire that sets a new standard for winter control and safety. iceGUARD tires allow more confident handling on both ice and snow.

A .driveAC02

C .drive2

iceGUARDStud iG35

A .drive

GEOLANDARV903

W drive

AC02C .drive2

Main Product Line-up

The tire designed to deliver environmental, human and socially friendly solutions for you and your car.

Part of A.drive family, these tires satisfy the performance requirements of the Asian Market.

The all-weather tire provides superior traction and stability on any road in both wet and dry conditions.

Comfortable enough for the drive home, yet tough enough for off-road treks, these tires provide good traction and handling even in snow.


Assembly at the Centennial Hall of Manila Hotel, where several suppliers of Toyota were

awarded for their exemplary performance in terms of Quality, Delivery and Cost.

The Environmental Contribution Award is newly introduced in this year's TSC General

Assembly, in recognition to companies with significant contribution to CO emission 2

reduction activities. YTPI was also noted for having the most number of implemented

Kaizen proposals in 2013.

We shall produce our tires, motivated to provide “Customer-oriented Quality and Competitive Price.”

We shall continually provide the products that the customers demand.

We shall continuously grow, by expanding our production facilities, and adding dynamic forces to support our

operations, and most especially, giving importance to the basics of 4Ms.

Product Responsibility

“Customer-oriented Quality: Continuously Improving our Process

4Ms to Adapt to the Ever-changing Needs of Our Customers”Our Company's Commitment to Quality:

1

2

3

YTPI path to achieve Mid-term VISION for 2013:

YEAR 2013VISION

MISSION: STRATEGY:

Quality at sourceStep Up Proactive Actions thru Effective Monitoring

Safe Plant andBest Quality Product

MOTTO:

“Think Future. Act Now”

When quality trouble occurs, its countermeasure activities shall be

classified into the three stages of P(pink), Y(yellow) and B(blue) depending

on the degree of progress (Note 1):

To properly address all Claims and Non-Conformity issues, and

to have a standardized manner of monitoring for future follow

ups, a systematic criterion is introduced.

The P-Y-B system aims to classify Quality issues and provide

appropriate actions to immediately resolve and eliminate

repetitions of the same issues.

PCountermeasure in progress

or

production, shipping is suspended

root causes are not identified or effectiveness of interim measures are under confirmation

YInterim measureshave been taken

and

outflow is prevented

effectiveness of countermeasures is under confirmation

BRecurence preventionhas been completed

or

permanent measures with hardware are completed

procedures, work instructions are already issued and stable operation is ensured

B is separated into:

B1: Outflow preventive action has been compltedB2: Occurence preventive action has been completed

The objective of the P-Y-B system of preventing Quality

problems can be likened to the target of reducing variations to

stabilize product performance from prototype to mass

production.

These are considered the catalysts that shall lead YTPI to achieve the highest Quality performance and make

the vision of becoming the Number 1 subsidiary plant of the whole Yokohama Group a reality.

YTPI Adapts Recurrence Prevention Activities (PYB Classification)

LSL (Lower Specification Limit)

USL (Upper Specification Limit)

CSL (Center Specification Limit)

LSL (Lower Control Limit)

USL (Upper Control Limit)

Mass Production

Pre-Production

Initial Production

Prototype

Reduce or totally eliminate process variation aims to meet nominal value at the highest point of production…

Out of Control

Within Tolerance

Flactuating

MinimumVariation

Stable

100%

50%

0%

Prevention

Correction

Quality

Quality Approach

The Plant Operations Division (POD) initiated the Scrap

Reduction Kessen (“Kessen” is the Japanese term for “decisive

battle”) in June 2013, with the objective of reducing the scrap

level at YTPI's East Plant (EP) by observing the actual

operations to establish standard actions to reduce or totally

eliminate waste.

The Kessen Captain (the Plant Operations Division General

Manager) commended the intensive efforts made by the Kessen

Teams; thus, standardizations were immediately implemented

by each process after Kessen I.

With the start of West Plant operations in 2013, and the

momentum of Kessen I still high gear, Kessen II was called for in

December 2013. The “battle” this time between the

YTPI Introduces “Kessen” Scrap Reduction Activities

East Plant (EP) and West Plant (WP), aims for the accelerated

and standardized scrap reduction activities.

Target

Kessen Scrap Index Result (June & December 2013)Scrap Index

May 2013 June 2013 December 2013

45%

100

90

80

70

60

50

40

30

20

10

0

100%

55%

O u r s c ra p ra t i o w a s dramatically reduced by almost 45% compared to the benchmark month of May.

We were able to make history by achieving the least amount of scrap.


YTPI's Quality Month for 2013 is themed “Customer Oriented Quality: Continuously Improving our Process 4Ms to Adapt

to the Ever-changing Needs of Our Customers”

This is in conjunction with the Yokohama Rubber Corp. (YRC) President's instruction to all of YRC subsidiaries at the start

of the Quality Month celebrations to interpret “good quality” as “customer-oriented quality”, keeping in mind that the

next process shall already be considered as a customer.

YTPI Celebrates Quality Month (November)

Mascot Competition

Quality Parade (Opening)

Quality Adventure Challenge

Quality Henyo

November 2013 Quality Month Activities

Several new activities were conducted during the Quality

Month celebration to advance YTPI employees' awareness

about the importance of Product Quality.

The target is not only to work routinely for compliance, but

more importantly, to commit to enhance the quality of

products and the quality of services offered by doing the

best job possible to produce and deliver high quality tires.

At the conclusion of YTPI's Quality Month celebration, Yokohama Rubber Company

President and Representative Director Mr. Hikomitsu Noji shares his insights.

It is worthy to note that “YTPI is doing a very great job,” especially in the aspects of 1) process-led Quality improvements, 2) System-based enhancements on outflow

prevention and traceability that can be shared to all YRC plants, and 3) the activity of

Manpower development through his method of “training-practice-examination-

qualification-certification.”

Quiz Bee

Poster-making Contest

Q & A with QA

5

6

7

1

2

3

4

It is one of the KPI's (Key Performance Indicator) of the Quality Assurance Section to comply with 1st, 2nd, and 3rd party

audit requirements, in line with the specifications of various local and international Quality Management standards, as

well as Original Equipment Manufacturer (OEM) requirements, to which YTPI is certified to.

st nd rdYTPI Undergoes 1 , 2 , and 3 Party Audits:

Internal Quality AuditsYTPI yearly conducts Internal Quality Audits to assess and

evaluate our compliance to ISO/TS16949 and ISO 9001

requirements.

1

Supplier and Customer Audits3

Quality Management System AuditsYTPI is also annually audited by an external certifying body

to assess our capability to continuously improve our

company's Quality Management System (QMS).

2

In March 2013, Chrysler Supplier Quality members

conducted a Process Audit of YTPI, with the objective of

establishing good Supplier-Customer relationship. The

auditors provided positive feedback after the audit of each

Process and upon reviewing YTPI's performance.


“Customer Oriented Quality: Continuously Improving our Process 4Ms to Adapt

to the Ever-changing Needs of Our Customers”


Mixing Section Kaizen ActivityThe main focus is Compound rubber which is the major

composition of a tire. With the improvements of Mixing

Section, compound quality was improved. One of their

activities is to reduce the main contributor of non-

conforming compound which is the Low ML (soft rubber)

problem on compound properties. The target set is 80%

reduction by the 3rd quarter of Y2013. Their theme is

“REDUCTION OF NON-CONFORMING COMPOUND

THROUGH SOLVING THE PROBLEM OF LOW ML

PROPERTY”.

Low ML is a property on compound which affects

processability on next process. Rubber is too soft and it

has a lower viscosity, usually caused by over-charging of

oil material. The graph below shows that Low ML problem

is the top contributor of the non-conforming compound.

MANUFACTURING PROCESSThe Manufacturing Department operates with high regard on its impact on Safety, Quality, and the Environment.

Kaizen or continuous improvement, and Kessen, the Japanese term for “battle” (scrap reduction campaign), are

some of the governing concepts behind each process to achieve a sustainable outcome.

These are applied in every activity in line with the goal to produce high-quality, environment-friendly and safe tires,

which might result to higher customer satisfaction.


Low ML / Low Mv

Long T30 /Long Ms

Long T95 Low MH High MH High ML /High Mv

Short T95 Short T30 /Short Ms

Low SG High SG

120

110

100

90

80

70

60

50

40

30

20

10

0 0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Total Non-Conforming Compound in Batches (Jan. 2012 - Jan. 2013)

Total Non-Conformity

Commulative Percentage

As the grouppriority

No. of Batches Percentage

25%

43%

55%

67%

78%

89%

94%98% 99% 100%

Based on the data, the group has conducted a series of

problem analysis until the following causes were identified

by the Mixing Section:

Step 1: Root Cause Step 2: Countermeasures

Accumulated and formed carbon particles

around the discharged surface

Repair defective Vibrator and attach Hammer-type Vibrator

on the portion prone to accumulation of carbon

1

Long charging of oil due to uncontrollable air

pressure going to the Oil Injection

Install pneumatic cylinder on oil injectors to control push

and pull of the injector rad piston (program is interlocked

with the charging sequence of oil)

2

Our Methodology

SEQDCM(Safety, Environment, Quality,

Delivery, Cost, Man)

Plan Do

ActCheck CONTINUOUS

IMPROVEMENT

SE

QD

CM

afety nvironment uality elivery ost an

Step 3: Result

Through continuous improvement (Kaizen) using the P-D-C-A

method, the section derived the effective improvements that

made their target achievable and sustainable.

Verifying the sustainability, non-conforming compound top

contributor was significantly reduced through elimination of long

charging of oil and carbon.

The graph shows that Low ML trend has

been significantly reduced as a result of

Mixing's kaizen activities implemented

start of May 2013.

2012Ave.

Jan.2013

Feb.2013

Mar.2013

Apr.2013

May2013

Jun.2013

Jul.2013

Aug.2013

Sep.2013

45

40

35

30

25

20

15

10

5

0

No. of Batches

Oct.2013

Nov.2013

Dec.2013

12.5

9

21 20

40

75

1

Low ML / Low Mv Trend for 2013

Cutting and Bead (CUBE) Section Kaizen ActivityCutting and Bead (CUBE) Section has provided a solution

in reducing the downtime occurrence on their process

which was increasing due to “Bead Wire End Tilting” and

“Poor Wrapping”. Bead Wire End Tilting is the sudden

detachment of wire end from the bead surface due to the

circumferential force of the bead wire. This problem was a

serious battle for CUBE section since early 2011.


Jun.2012

Jul.2012

Aug.2012

Sep.2012

45

40

35

30

25

20

15

10

5

Minutes

Oct.2012

Nov.2012

Dec.2012

50

Wire End Tilting Downtime 2012 Trend

Average Monthly Downtime

Target Monthly Downtime

Target downtime is 21.5 minutes per month set from 2011 Kaizen activity

The data shows that on the latter part of 2012, the tilting problem started to rise again and gave significant problem to Bead operation

Jan.2012

Feb.2012

Mar.2012

Apr.2012

May2012


From the start of this project Year 2011, CUBE process has already came up with 10 possible countermeasures and

improvements. These consist of machine modification namely: flapper re-positioning, change on spring design, a

series of improvement on the thread condition, and wrapping assembly modification.

Countermeasure

Among the series of modification, the

improvement on the Bender Roller had the

most significant effect. Bender Roller serves

as mechanism to pre-form the Bead wire

material into the required circular pattern.

Having this mechanism, the circumferential

force of the material going upward has been

reversed and goes downward, limiting the

possibilities of Wire end Tilting.

Checking the data versus the number of days per month, showing on the significant

decrease on the downtime caused by Wire End Tilting on Bead operation.

2013st

1 Half Ave.

40

35

30

25

20

15

10

5

0

MinutesWire End Tilting Downtime Trend 2013

Jul.2013

Aug.2013

Sep.2013

Oct.2013

Nov.2013

Dec.2013

Average Monthly Downtime

Target Monthly Downtime

With the effectiveness of M1 Kaizen Activities, each member has gained intangible benefits; they have increased their

level of capability and skills in the workplace, gaining much confidence because of the remarkable results of the

project. Overall, the major accomplishment of Manufacturing 1's Kaizen activities is on providing solutions to numerous

problems encountered on the production line. Not only that these activities has resulted to meeting the targets

indicated on KGI/KPI, but also in earning the management's trust and confidence, because of each members' best

efforts in achieving the goal.

Curing Section (West Plant) Kessen II Targets

During the Kessen II campaign, West Plant Curing process

focused on the improvements of two top Curing-related

defects: Light Liner (LL) and Pinch Bead (PB). Root

causes of these defects were determined and the

countermeasures were formulated.

Scrap ReductionThere are four reasons why pinch bead (PB) occurs Based

from these causes, the following improvements were

implemented:


Green tire mischucking Turret modification1

Addition of locking system (turret to the ground) to avoid movement of turret that causes misalignment

Addition of centering guide to keep the green tire straight on the turret

Result

After the latest improvement

on Bender Ro l l e r, the

downtime caused by Wire End

Tilting on bead operation has

significantly decreased as

shown in this graph.

Improper loading Orientation of Curing load man regarding proper green tire loading4

Sagged bladder Improvement on center post stroke by replacing limiting sleeve lenght3

Step 3: Result

As a result, PB occurrence reported in December is 0.05%, second lowest in a month for West Plant.

Loader offset to the center post due to

damaged loader shock absorber

Modification of loader actuator to increase the sensitivity of the loader sensor

and reduce offset green tire at the loader

Replaced easily damaged shock absorber with better quality

2

For light liner (LL), the main cause is the Bladder's insufficient contact to the liner surface. Two main causes were

encountered by WP Curing: bladder's lateral stretching is not enough, and Booster relay problems.




Booster relay problems Booster relays with clogged filters were replaced,

slightly improving LL occurrences.

1

Upon checking of the booster relay, it was found out that the filter is blocked by dirt: a possible reason why pressure injected to the bladder is insufficient.

Step 3: Result

Bladder's lateral stretching is not enough Bladder type was changed (to B543P) which

effectively stopped LL occurrence.

2

Total LL percentage for

December is 0.02%,

which is a big

improvement compared

to November, which is

0.34%.

stReduction of Missed Detection (MD) can decrease scrap accumulation, as reducing MD at 1 Inspection has also been

one of the top priorities for Manufacturing 2 Department.

Based from November’s missed detection data, top three defects can all be found at the inner liner area. Thus,

improvements on the inspection of the inner liner are given high focus.

Missed Detection Reduction

Countermeasures

Inspectors use two methods when inspecting the inner liner:

when the tire is in straight position, and when the tire is tilted.

Change in method Lighting Improvement

method 1:

Stationary Position

method 2:

Tilting of Tire

Original: Modified:

1 2

Results

C u r i n g I n s p e c t o r s '

evaluation revealed that

combining both methods is

more effective than using

only one method.

Inspection table lighting was also modified for the 1st inspectors

to easily detect defects.

May2013

Jun.2013

Jul.2013

Aug.2013

Sep.2013

Oct.2013

Nov.2013

0.70%

0.60%

0.50%

0.40%

0.30%

0.20%

0.10%

0%

Scrap Percentage2013 Missed Detection Trend (West Plant)

stThe graph shows 1 Inspection's Missed Detection rate at West

Plant for the month of December (0.07%). This is so far the

lowest Missed Detection rate in West Plant.

Missed Detection

Dec.2013

0.14%0.11%

0.17%

0.29%

0.22%

0.36%

0.65%

0.07%

Feb.2013

Mar.2013

Apr.2013

May2013

Jun.2013

Jul.2013

Aug.2013

12%

10%

8%

6%

4%

2%

0%

Scrap Percentage2013 Curing Scrap Trend (West Plant)

Sep.2013

The graph below shows a remarkable decline in the actual scrap

trend (0.67%) of West Plant's Curing by the end of Y2013:

Oct.2013

Nov.2013

Dec.2013

Sand in Tire: An Environmental Friendly Filler Option

Actual Curing Scrap

Curing Scrap Target

Curing Scrap Target = Actual Scrap =

0.98% 0.67%

0.98%0.67%

WP Curing's Kessen II Overall Results:

As part of Yokohama Tire

Philippines Inc. goal to

preserve and protect the

environment, usage of raw

materials derived from

naturally occurring substance

that will give less impact to the

environment are promoted. One of these raw materials is

silica or also termed as “pure sand”. Silica sand is one of

the most common varieties of sand found in the world. It

is used for a wide range of applications and in industrial

processing. The use of silica as fillers, with the help of

coupling agents and good compounding, gives better wet

traction and drivability of snowy conditions on roads and

rail roads. It is used in place of carbon black to produce

tires with a low rolling resistance. Low rolling resistance 2equates to lower fuel consumption and fewer CO

emission by decreasing required rolling effort and

improving vehicle fuel efficiency.

YTPI, with the help and support of YRC, our mother

company, continues its research and development in

making silica to become the main filler for almost all cap

compounds. Since 2010, the usage of silica to YTPI

production has increased from 20~30PHR to 70~80PHR.

From then, silica technology in tire has served to the

conservation and preservation of the environment, and

that is, the best benefit of sand in tire.

This is a statement in our Environmental Policy. A commitment we continue to uphold through responsible use of

energy and other resources in producing quality tires.

“Contribute to the prevention of Global Warmingand preserving of natural resources.”

For East Plant. Number of tires produced for 2013 went

down to 5,634,499 pcs from 6,197,796 pcs in 2012. This is

9.26% decrease in production which, consequently, led in

the decrease of raw material consumption: Rubber (both

natural and synthetic) - 23.81%; Chemicals (carbon and

other additives) - 24.75%; Textile and Metals - 22.96%.

However, it should be noted that reduction in raw

materials used is greater than the decrease in

production. It is an indicator that the efficiency in the use

of raw materials increased.

INPUTEnergy Consumption East and West Plant

Electricity59,038,861 kWh

Fuel (Boiler)7,417,115 Liters

Fresh Water3376,732 mEast

13,226,424 kWh 990,463 Liters3129,246 mWest

F

Raw Materials Consumption East and West PlantRubber

18,726,218 kgsChemical

16,111,942 kgsTextile and Metal

6,487,070 kgsEast

1,743,609 kgs 1,371,576 kgs 99,437 kgsWest

MANUFACTURINGTire Manufacturing Process

Production Output (cured tire): 5,623,297 Tires 11,202 TiresEast Plant West Plant

OUTPUTEmission to Air East and West Plant

*unit of measurement used is mg/NCM

Carbon dioxide Emission42,310 tonsEast

West

CO2

509.16 tonsAmbient Air Quality Parameters

SOX

NOX

PM10

Gov’t Std.

340

260

200

Yr. 2013

11.88

10.88

39.50

*unit of measurement used is mg/NCM

Boiler Air Emission QualityParameters

SOX

PM

CO

NOX

Gov’t Std.

1,500

150

500

1,500

Yr. 2013

16.67

11.67

0.83

104*unit of measurement used is mg/NCM

Generator Air Emission QualityParameters

SOX

PM

CO

NOX

Gov’t Std.

700

150

500

2,000

Yr. 2013

-

-

7.18

283

no longer tested as ordered by DENR-EMB R3 due to good performance in the past years

Waste Generation (Total)Waste Generation1,919.69 tonsReusable

Recyclable

Non-Recyclable/Residual

Hazardous

136.32

1,522.72

6.78

253.87*unit of measurement used is Tons

Wastewater Discharge (Total)Wastewater Quality ParametersParameters

pH

Color

BOD

COD

TSS

Oil & Grease

CDC Std.

6.5-9

150

200

400

200

5

Yr. 2013

7.09

43

37.25

129

56.38

1.91

Raw Material Consumption

For West Plant. The process at West Plant is not as

efficient as that in East Plant; which is only to be expected

from something that's just starting. A lot of materials

were used for the testing and commissioning of

machines. The West Plant only produced 11,202 pcs of

tires yet consumed 1,743.61 MT of Rubber (both natural

and synthetic), 1,371.58 MT of Chemicals, and 99 MT of

Metals and Textiles.

Mixing

Extruding

Cutting & Bead

Tire BuildingCalendering

Curing

Inspection

Finishing

Environmental Performance


Raw Material Consumption Per Tire

0 2 4 6 8 10kg/tire pc

4.17

3.97

3.33

Rubber

2011

2012

2013

Chemicals Textile and Metals

3.91

3.45

2.87

1.28

1.36

1.15

Energy Consumption EfficiencyThe energy efficiency of 2013 has improved despite the decrease in production. This is a result of the various energy

conservation activities of the company which include: (a) investments in power-saving equipment, (b) machine

part identification and correction, (c) steam leak finding and correction, and (d) cooling tower float valve

corrections, among others.

Electricity (Purchased and Generated)For East Plant.

For West Plant.

Decrease in production also resulted in the decrease in electricity consumption. However, contrary to the previous year wherein the decrease in production also resulted in the decrease of efficiency, electricity efficiency for 2013 improved despite the decrease in production. The average consumption for 2013 is 10.53 kWh/tire; this is 1.31% improvement from the 10.67 kWh/tire consumption of 2012.

Just like in raw materials consumption, West Plant electricity consumption efficiency is not as good as that in East Plant. The average consumption is at 89.56 kWh/tire. That is more than eight times of the efficiency at East Plant. This may still be accounted against the start-up, test runs, and commissioning of machines. However, it must also be noted that as the operations in West Plant progressed, the efficiency

Electricity Efficiency vs. Production

9.89

0

2

4

6

8

10

0

2

4

6

8

12

10

3Tire pc x 10 kWh/Tire

10.67 10.53

7.06

6.205.62

Monthly Ave. Production kWh per Cured Tire

2011 2012 2013

also continuously improved, from 1,021.88 kWh/tire in January to 48.04 kWh/tire in December.

Waste ManagementWastes are innate part of a manufacturing process.

Since this is inevitable, the least thing a company can do

is to make sure that its waste is managed, controlled,

and disposed properly.

The total generated waste for 2013 is 1,919.69 tons,

8.14% more compared to 2012 mainly due to the start

up of the West Plant.

Reuse-Recycle RateThe Reuse-Recycle Rate determines how much of the total generated waste is being reused or recycled. For 2013, the reuse-recycle rate is at 86.42%. This fell short of the set reuse-recycle rate of 88.5%. This is also lower than the performance in 2012 which is at 88.23%. This is mainly due to increase in the generation of hazardous waste. Last March 2013, the waste water treatment tank was desludged to improve the waste water quality. This entailed disposal of 23 tonne of sludge.

1,500,000

2,000,000

2,500,000

0

500,00

1,000,000

Waste for Reuse/RecycleKilograms

Landfill RateThe Landfill Rate determines how much of the total generated waste is being disposed to the landfill. These are the wastes that are non-recyclable but also non-hazardous and non-toxic. The 2013 target for landfill rate is 0.27% of total generated waste or lower. However, the landfill rate average for 2013 is at 0.36%. This is due to the transfer of label backings and tire labels from hazardous waste to landfill waste as mandated by Clark Development Corporation (CDC).Water Efficiency vs. Production

6

8

10

0.025

0.075

3Tire pc x 10

3m /Tire

7.06

6.20

Monthly Ave. Production3

m per Cured Tire

0.060

0.07110.06720.0657

0

2

4

2011 2012 20130

0.015

0.030

5.62

Fuel (Boiler)For East Plant.

For West Plant.

As mentioned, the energy conservation activities of YTPI are not only focused in conservation. Various activities are also done to reduce the fuel consumption of boilers. As a result, the fuel consumption efficiency of 2013 improved as compared to the pas year. The average fuel consumption went down to 1.32 L/tire in 2013 from 1.33 L/tire in 2012. This is a 0.83% improvement in fuel use efficiency.

The average fuel consumption efficiency for West is at 6.82 L/tire, more than five time of the efficiency of East Plant. However, just like for electricity, the efficiency improved as the operations progressed. It started at 140.69 L/tire in January and ended at 4.22 L/tire in December.

Fuel Efficiency vs. Production (East)

8

10

2.3

3.0

3Tire pc x 10 Liter/Tire

7.06

Monthly Ave. Production Liter per Cured Tire

0

2

4

6

2011 2012 20130

0.8

1.51.33 1.32

6.205.62

1.14

WaterFor East Plant.

For West Plant.

The water efficiency for 2013 has greatly improved that in November 2013, the consumed liter of water per tire is almost the same as the first half of 2012 during when the production is at its peak. The average water consumption for 2013 is 67.2 L/tire, 5.49% better than 2012.

The average water consumption efficiency is at 900 L/tire which is 13 times higher than that in East Plant. But just like in electricity and fuel, water consumption efficiency also improved as West Plant operations improved. In January, the efficiency is at 13870 L/tire but in December it went down to 620 L/tire. A long way to go compared to East plant but a good start, nonetheless.

2011 2012 2013

2,313,770

1,560,6451,659,032

4,000

6,000

8,000

0

2,000

Non-recyclable Waste / Waste Disposed at LandfillKilograms

2011 2012 2013

7,012

5,941

6,782

Environmental Performance


Last October 19, 2013, YTPI held its Forever Forest 6 in

front of the new Raw Materials Warehouse at West Plant.

The company's Forever Forest 6 was originally set last

October 12, 2013 but was rescheduled the following week

due to Super Typhoon Santi (international name: Nari).

Nonetheless, a total of 444 people joined the event that

included Yokohama Tire Sales Phils., Inc. (YTSPI)

employees, tire dealers, Yokohama India (YIN) trainees,

and YTPI employees and their families.

2A total of 3,522 seedlings were planted in the 1,184 m

area in front of WP's Raw Materials warehouse. The

seedlings were composed of 34 native varieties, some of

which are endemic to the Philippines. Native varieties are

chosen to adopt the concept of potential “natural

vegetation” of Dr. Akira Miyawaki, a plant ecologist and

Professor Emeritus at Yokohama National University. As a

great improvement from previous Forever Forests, 86% of

the seedlings planted during FF6 were grown in YTPI's own

nursery and almost 50% of these seedlings came from the

seeds of trees planted in previous Forever Forest projects.

As of FF6, the total number of seedlings planted in YTPI now

reached 28,274 and the total area of Forever Forest Project is 28,892 m . This project will continue until 2017 and YTPI's

perimeter will then be surrounded by trees and seedlings.

Forever Forest(West Plant)

36,000 trees

Forever Forest(East Plant)

23,751 trees

Forever Forest Project MapFF7 (2014)No. of Trees

Planting Area21,918 m

6,713

FF9 (2016)No. of Trees


4,950FF8 (2015)No. of Trees


4,950FF11 (2018)No. of Trees

Planting Area2

1,750 m

5,755



6,022

FF6 (10/2013)No. of Trees


3,522

FF5.5 (4/2013)No. of Trees

Planting Area2440 m

974FF5 (2012)No. of Trees

Planting Area2

880 m

2,896FF2 (2009)No. of Trees


4,425


Planting Area2

1,560 m

5,300


Planting Area2

1,560 m

5,125



6,005

Forever Forest Tree Planting

Forever Forest Projection

Forever Forest Target for East and West Plant

Forever Forest: 6 years and counting…


The Yokohama Rubber Company (YRC), mother company of Yokohama Tire Philippines, Inc. (YTPI), launched Yokohama

Forever Forest last 2007 as a project that will place 500,000 seedlings in all Yokohama plants worldwide by 2017, the year

which will mark YRC's centenary. For YTPI, the project was launched in 2008 and has become a yearly event since then.


One notable difference of this year's Forever Forest from

the previous ones is that a huge chunk of the seedlings

planted were grown from YTPI's own nursery. Some of the

seeds were gathered from trees grown in the past Forever

Forest Projects. But since some are not matured enough to

bear fruit yet, there were only few varieties gathered. To

increase the number of variety, some seeds were

purchased outside.

The nursery can house more than 8,000 seedlings. It has

an area for germination and an area for transplanting

seedlings from germination box into seedling bags. As of

this writing, the nursery contains around 3,000 seedlings

that are ready for planting. There are still some seedlings

The YTPI Nursery

in the germination boxes waiting to be germinated or

transferred. And more seeds are still being gathered from

the Forever Forests.

Energy Conservation MonthThe Energy Conservation Month was reinvented in 2013.

Instead of February just like the previous years, the Energy

Conservation Month was moved to May to make room for

more preparations and activities with the theme: “Energy

Conservation: An Action to a Low Carbon Society and

Sustainable Earth”.

One of the activities is Poster and Slogan Making Contest

which aimed to tap the artistic side of the employees and at

the same know their stand in Energy Conservation. The

winning entry was used as the centrepiece of the tarpaulin

design for EnerCon Month.

The main event in the EnerCon Month is the Jingle Making

Contest. There were eight well-written and composed

entries which were performed live last May 2, 2013. The

winning entry “Hey! Are you ready?” is currently being

played all around the plant at 12nn to promote energy

conservation and encourage the participation of everyone.

Other activities for EnerCon Month included energy patrol,

steam leak findings and correction by supervisors, and

energy audits.

1

Environment MonthOnce again, YTPI joined the whole world in the observation

of Environment Month 2013 last June. Various activities and

events were done to promote environmental protection and

preservation to the employees.

EMS Re-orientation was launched. This series of

orientations aims to refresh the knowledge of employees in

ISO 14001:2004 and the environment in general. Target

participants are those who have been in the company for

more than 5 years. This activity is still on-going and will

continue until all employees are re-oriented.

Another event is the Environment Quiz Bee. This activity

aims to strengthen employees' awareness in ISO 14001 and

the Environmental Management System of YTPI in general.

And now on its third year, the ZERO Waste Marathon was

again held to test the knowledge of YTPI members in proper

waste management and general knowledge on environment

through a series of fun tasks and puzzles.

2

stISO 14001:2004 1 Surveillance AuditLast September 24-27, 2013, YTPI's compliance to ISO

14001:2004 was checked through a surveillance audit

conducted by TUV Nord Philippines, Inc. After submission

3

of the corrective action for

t he two c i t ed m ino r

nonconformities, YTPI was

able to maintain its ISO

14001:2004 Certificate

w h i c h i s v a l i d u n t i l

November 11, 2015.

As part of its commitment to work together with the

community for the preservation of the environment, YTPI is

open to partnerships with schools and other units to hold

various environmental activities.

Since its launching in 2011, Waste Management Orientation

for Students has now become one of the most sought after

activities of schools since this would help them manage

their wastes properly. At the end of every orientation, YTPI

will donate trash bins which the schools may use in applying

what they have learned. Three lucky schools were chosen

this year to be granted with this program.

Other CSR Activities4

Waste Management Orientation

Mabiga ElementarySchool

School Beneficiary

Duquit ElementarySchool

Lourdes Northwest Elementary School

Date No. of Students

March 4

June 28

October 7

100 students

100 students

100 students

ENVIRONMENTAL ACTIVITIES



ENERGY CONSERVATION ACTIVITIES

To offset the effect of continuous low production in Y2012,

Engineering and Maintenance Department (EMD) continued to

strengthen YTPI's ENERCON ACTIVITIES in Y2013.

One of the highlights of ENERCON activities in Y2013 are the

several ENERCON Audits and Patrols which became the source

of most ENERCON activities that EMD implemented:


EMD ENERCON Activities and ENERCON Activity Sheet

Mr. Yasuda's audit (a YRC Enercon expert)

YRC Enercon audit with Mr. Hatori & Mr. Koseki (from Shinshiro and Mishima plants respectively)

Monthly leak patrols conducted by process owners

1.

2.

3.

All ENERCON activities are still on-going and are continuously

being implemented and expounded on all applicable areas and

machines in YTPI. Each ENERCON activity is summarized in

one sheet called the ENERCON Activity Sheets.

The following are some of the ENERCON Activity Sheets for

Y2013 concentrated on the main activities of EMD

ENERCON:

Steam Audit conducted by the steam authorities (the makers of steam traps)

Monthly Patrol during Stocktaking, to identify energy waste during days with no operation

4.

5.

Elimination of idle runningObjective

Findings

Activity

Date

The main objective is to automatically stop or turn-off the machine when idle or no operation. This is a priority as it can generate energy savings without the need for investment or extra expense.

UF #6 hydraulic pump motor are continuously running even without tire in process at automatic mode.

Modify sequence program in such a way that the hydraulic pump motor will stop when no tire in process after 1 minute.

July 2013

Evidence Expected Savings

8,212 kWhSavings in Quantity

Php 53,381Savings in Amount

Installation of inverters on continuously running motorsObjective

Findings

Activity

Date

By reducing the rotation speed of the motor to a certain degree, energy consumption is achieved without affecting the motor's normal function & operation. A 5Hz reduction on the frequency to reduce speed can generate a 20% savings on energy consumption.

Machine running at full voltage during normal operation and at idle condition within 24 hrs. at Side Extruder Existing (SDA1) TCU.

Install inverter for Side Extruder Existing (SDA1) TCU to reduce the power consumption during normal operation and at idle condition.

March 2013



Php 239,148Savings in Amount

Installation of energy-saving and energy efficient fixtures and devices.Objective

Findings

Activity

Date

Conversion of ordinary fluorescent lamp to LED lamp is an example as it can instantly generate a 40% savings on power consumption. An increase of 80% in brightness and illumination is an added advantage. Lighting improvement activities were not only focused on LED replacement, but also on lowering the heights of the lamps.

Installation of separate switches to turn-off some area were also implemented.

Phase 3 J-line area was installed with Fluorescent lamps and Hi-Frequency Inverter ballast

Replace/convert Fluorescent Lamps to LED Tubes & remove the Hi-Frequency Inverter ballast

December 2013



Php 1,228,725Savings in Amount

Regular checking of steam trapsObjective

Findings

Activity

Date

A defective steam trap is equivalent to a continuous steam leak. By checking regularly, "passing" steam trap (leaking internally) are identified immediately; thus, continuous steam leak is prevented. Machines without steam traps are equivalent to leaking steam traps, so another activity conducted is the installation of steam traps on several machines without steam traps.

Boiler area steam header defective steam trap

Replacement of defective steam trap to minimize fuel consumption in terms of boiler operation.

March-December 2013


9,299.22 liter per year

Savings in Quantity

BEFORE

AFTER

BEFORE

AFTER

Initiatives towards Community Development

SUPPORTING THE SYSTEM OF CSR AND ENVIRONMENTAL AFFAIRSWe established a system to plan and examine important social responsibility issues with the ultimate goal to build a

trusted identity as a contributing member of the global community.

Our community relations and environmental promotion system is supported by the CSR and Business Operations

Department for consistent and advanced practices in all level of operations.

Mission:

Assigment:

Activity:

.

... .

Provide assistance to calamity-stricken

communities.

To respond to the needs of the communities

in the Visayas region severely affected by natural disasters,

we were able to raise funds and personally turnover the

gathered resources to non-government organizations as

donation to the calamity victims.

For the benefit of the victims of earthquake in

Cebu-Bohol, YRC, YTSPI and YTPI donated a total amount

of PHP800,000.00 through Phil. Red Cross (PRC) last Nov.

5, 2013. YTPI also led an employee donation drive called

“Show you Care, Give a Share” where they gathered a total

amount of PHP68,024.43 and was donated to PRC last

November 15, 2013.

For the Typhoon Yolanda victims, YTPI donated a total

amount of PHP700,000.00 to Philippine Red Cross and

World Vision (PHP350,000.00/each) to assist in their relief

efforts in Eastern Visayas. Savings from all the company

Christmas events/activities that were laid-off and donated

to Yolanda victims. Another “Show you Care, Give a Share”

employee donation drive was led, gathering a total amount

of PHP94, 681.35 which is donated to Philippine Red Cross

last December 10, 2013. Other Yokohama subsidiaries also

donated to PRC for the typhoon Yolanda victims.


Disaster Response

Mission:

Assigment:

Acticity:

.

. .

Provide a safe and conducive learning

environment through improvisation of facilities for the

benefit of the students.

To cater to the needs of children in the

community by providing the school with better facilities that

may be used by all members, thereby promoting a clean

environment.

YTPI turned over a 3-seater toilet complete with

a hand-wash station to Duquit Elementary School,

Mabalacat, Pampanga to benefit 984 pupils last November

12, 2013.

Toilet Construction

Mission:

Assigment:

Activity:

.

... .

.

Contribute to social welfare by addressing the

needs of undernourished children.

To help cater to nutritional needs of children

in the community by providing them access to nutritious

foods and to help improve the status of malnutrition among

schools.

YTPI launched a Feeding Program in

coordination with Angeles Nutrition Action office to 53

students that were identified as “undernourished”or “low

weight” at Pineda Gutierrez Elementary School. This

program ran for 60 days (September 4 – Dececember 9,

2013), providing them with hot meals as well as food

supplements. Children were also provided with utensil kits

that they used throughout the program. Before the start of

the program, the students underwent deworming facilitated

by the school. The results as of December 9, 2013 showed

that 96% of 50 children are now considered NORMAL

weight.

Feeding Program

1

2

3


Mission:

Assigment:

Activity:

. .

... .

Make YTPI and its employees reach-out to

neighbor communities in the spirit of the holidays.

To pave way to celebrate holidays for the

underprivileged institutions by providing gifts based on their

immediate and operational needs, and to promote the spirit

of sharing and volunteerism to employees.

YTPI managers together with LMC and CSR

reached-out to neighbouring institutions for the spirit of

holiday season last December 16-18, 2013 to Cancer

Warriors Foundation, Haven for Women and Children, and

Munting Tahanan ng Nazareth. A small gathering was

prepared together with gifts such as medicines, clothes,

slippers, grocery items, rice, etc. were given to these

institutions.

Outreach Program

Dec. 16

Date

Dec. 17

Institution Beneficieries

Cancer Warriors Foundation

Haven for Women and Children

Lubao Pamp.

Location

Magalang, Pamp.

Dec. 18Munting Tahanan ng Nazareth Mabalacat, Pamp.

children diagnosedwith cancer

Background

rehabilitation to abuseand exploited girls

children with disabilitiesand special needs

medicines & rice

Donated Items

electric fan, clothesslippers, grocries & rice

electric fan, grocies &rice

53

85

42

Mission:

Assigment:

Activity:

.

. .

.

Provide access to quality education to

underprivileged yet deserving students for them to uplift

their lives.

To give financial support by providing the

scholars' full tuition & miscellaneous fees, book allowance

and monthly allowance. Through building partnerships with

the academe, YTPI also offer possible employment for the

engineering and information technology scholars who have

successfully completed their course requirements under

the scholarship program and showed exemplary

performance as students.

With St. Louis University (SLU). YTPI signed a

Memorandum of Agreement (MOA) to formalize

Scholarship Program last September 13, 2013. In this

partnership, YTPI committed 6 scholarship slots to

Engineering students from SLU.

With Tarlac State University (TSU). YTPI together with

Tarlac State University (TSU)signed a Memorandum of

Agreement (MOA) to formalize Scholarship Program last

May 17, 2013. Last August 13, 2013, YTPI and TSU

formally welcomed 5 new engineering students to be part of

the Scholarship Program.

Scholarship Program

Mission:

Assigment:

Activity:

.

.

.

Contribute to Health and Safety of the

communities by sharing medical resources from YTPI.

To provide the community access to medical

check-up and basic medicinal supply so as to pursue

medical attention to the health concerns of the community.

YTPI in cooperation w/ Unilab and EastWest

HealthCare Inc. held two Medical Missions for 2013: A total

of 500 residents benefitted from these events as they were

provided with free medical consultation and medicines.

Medical Mission

April 27

Date

November 13

Location Beneficieries

Brgy. Tabun, Angeles City

Brgy. Atlubola, Mabalacat

200 residents

300 residents

4

5

6

Initiatives towards Safety and Health in the Workplace

SAFETY PERFORMANCE FOR THE YEAR 2013Yokohama Tire Philippines, Inc. recognizes the importance of preserving human life: that our employees are our

most important assets. To this end, Safety Management Section (SMS) together with the Top Management and

Safety Core Team strive to achieve zero major incidents through our various activities.

Risk Assessment TrainingThis 4-hour training course is administered 3 times a week.

SMS was given the first Risk Assessment training conducted

by YRC Safety Department Safety Secretariat, Mr. Alexey

Kindyshenko. On the other hand, our YTPI Champion, Mr.

Ermy De Jesus has both conducted the training for all Safety

Core Team members as well as all Supervisors, achieving

100% attendance and participation. Mr. De Jesus also has

started conducting the training for team members

achieving 32.59 % attendance and participation.

1

Occupational Safety and Health Procedures

Hard copies of these procedures provided on each section

and different locations in the plants were already replaced

into soft copies and can be accessed easily in the Central

File. This project has saved the company 50% of paper

consumption for the year 2013.

2

NT Cutter-Free Plant ActivityBased on the Safety team evaluation,

it is found out that there is a higher

risk of incurring incident with the use

of an NT-Cutter. SMS team together

with the Top Management searched

for a better alternative to eliminate

the hazard of being cut. Almost 99%

of NT Cutters were replaced with

shorter blades. The only remaining

activity that uses NT Cutter is the

Blow Point Checking, which is

currently considering another type of

cutter to replace the longer blades.

3

th25 National Fire Brigade thCompetition and The 8 Internal

Fire Brigade CompetitionNational Fire Brigade Competition was held last March 2,

2013 at Mehan Garden, City of Manila. YTPI Team was

elevated in Class A Category following the team's last year

being the Champion in Class-B Category. Likewise, Internal

Fire Brigade was held last April 26, 2013. Champion came

from QAT (Quality Assurance and Technology and

Inspection Section); followed by Curing and Mold Section at

Second Place; and Third Place is Cutting and Bead Section.

4

OHSAS 18001:2007 Re-CertificationRe-certification audit is held last September 24-27, 2013,

with 3 Minor Non Conformities. Corrective Actions were

submitted and accepted last October 24, 2013. The New

OHSAS 18001:2007 Certificate was released to YTPI by the

external auditors, TUV Nord.

5

Safety GateThe Safety Gate is intended to

increase the safety-mindedness

of every YTPI employee. This is

to remind everyone that once a

person passes by the Safety

Gate, he will be treated as a

“Safe Person”. The BASIC

SAFETY RULES and the TEN

SAFE MAN RULES are posted on

the Safety Gate and must be

strictly followed at all times.

6

th8 Internal Fire Brigade Competition th25 National Fire Brigade Competition

NT Cutters

New Cutters

There are no NT Cutter-related incidents on all months of

2013.


HEALTH THROUGH AWARENESSWith the continuing efforts of Yokohama Tire Philippines Inc. (YTPI) to promote healthy lifestyle, the Medical

Team has introduced a “Meat-Free Day”, a once-in-a-week program which aims to reduce the risk of having heart-

related diseases and help to curb obesity. As an alternative, fish and vegetables rich in vitamins and minerals are

now being served by the canteen concessionaires. Due to its positive effects, this has been embraced by the

employees as part of their regular balanced diet throughout the year.

Going meatless is not enough to be in a good physical shape

so YTPI offered calorie-burning activites such as Zumba (a

Latin-inspired aerobics), body combat (combination of

karate, boxing, taekwondo, tai chi and muay thai), and body

conditioning (use of body weight for core conditioning and

muscle strength).

Lectures were also provided on healthy diet, managing

stress in the workplace, ergonomics and awareness about

Hepatitis B, a viral infection which attacks the liver and can

cause both acute and chronic disease. It is caused by

Hepatitis-B Virus (HBV) which spreads through sexual

contact, sharing of needles and shaves, blood transfusions

and perinatal factors. Study shows that HBV is about 100

times more infectious than Human Immunodeficiency Virus

also known as (HIV).

More than 1900 employees were also given anti-flu

vaccination to prevent and alleviate the common disease.

Screening tests such as HBV, Fasting Blood Sugar (FBS) and

Bone Density were conducted. The graph below shows the

positive results of the programs implemented for the year

2013:

Meat Free Day

Schedule:

Status:

February 1, 2013 (both Canteen 1 and 2)

Continous program at present

Schedule:

Attendance:

February 27, 2013

25 employees

Schedule:

Attendance:

March 1, 2013

30 employees

Schedule:

Attendance:

April, July and August 2013

105 employees (Lecture)

336 employees (Screening)

Schedule:

Attendance:

May 2013

100% compliance

Schedule:

Attendance:

June 2013

99% compliance

Schedule:

Attendance:

April 2013

1,909 injected

Schedule:

Attendance:

August and September 2013

245 employees (15 sessions)

Schedule:

Attendance:

July and September 2013

53 employees

Schedule:

Attendance:

December 2013

Lecture on Managing Stress in the Workplace

Lecture on Healthy Diet

Lecture on Hepa B and Screening

Drug Test for a Drug Free Workplace

Annual Medical Examination

Flu Vaccination

Zumba and Body Conditioning

Ergonomics Lecture

FBS and Bone Density Screening

180 employees

10

15

20

0

5

2012 vs. 2013 Data ComparisonPercentage

Respiratory

4%3%

Obese

8.53%

4.57%

Overweight

18.50%

12.06%

Hypertension

17.38%

5.01%

1%

De

crea

se

3.9

6%

De

crea

se

6.44% D

eacrease

13.37% D

eacrease

2012 2013


Human Capital is considered to be the company's greatest asset. Investing in the development of each employee's

knowledge, skills, and attitudes (KSA) is a clear indicator of the Top Management's support and contribution to the

welfare of its people.

Trainings and Seminars

Training Attendance ReportNo. of Empyees by Position and Type of Traning

Employee Position No. of Employees / Year

Internal Training External Training Total

Team Members/ TeamLearders

Supervisors / SeniorSupervisors

Section Managers / Department Managers

Total

2539

831

9

291

483

72

2,830

1,314

81

3,379 846 4,225

Average Hours of Training per Employee by Position

Employee Position Training Hours

Employee / Year




38

40

16

Average Hours of Training per Employee by Position and Type of Training (Internal and External)

Employee Position Training Hours / Employee / Year

Internal Training




7

8

0

Internal Training

15

18

13

Average Hours of Training per Employee by Classification of Training (Functional and Behavioral)

Employee Position Training Hours / Employee / Year

Functional

Team Members/ Team Learders

Supervisors / Senior Supervisors


18

19

13

Behavioral

2

4

0

Organizational

18

17

3

Behavioral training are soft skill trainings focused on

behavior, abilities, attitude, habits, personality traits,

personal attributes, and people skill, while Functional is

centered on technical skills, specific area of expertise in

process, technology, functional area as a knowledge or

Training programs being conducted/facilitated by

company qualified trainers to employees either in-house

or outside the company as categorized shall be

considered as internal training. Training conducted by

Manpower Development


external training provider whether in-house or outside

company premises shall be considered as external

training.

skill, generally acquired thru education or some form of

studies. Organizational training includes training to

support and meet the strategic business objectives set by

the company and its organizational mission and vision

statement.


Behind our company's success are its people. We provide challenging opportunities to them by providing a dynamic

work environment and career advancement opportunities through trainings and seminars.

MANPOWER SKILLS LEVEL-UP

Team Buidling Module 2:Strengthening Team Work through Values

Strenghten teamwork and create

a healthy climate through

Honesty, Respect, Trust and Self-

discipline.

1

Facilitator:

Date of Training:

No. of Sessions:

Participants:

YTPI HRM-Training and Development

November 29, 2013

1

63 attendees

Positive Discipline in the WorkplaceTo understand conflict generation

and learn the different ways for

resolution.

To be able to communicate

properly and have a positive

discipline and Counselling,

Coaching and Mentoring.

2

Facilitator:

Date of Training:

No. of Sessions:

Participants:

Dean Jorge Sibal and Professor Ed Sison (CLEARED Inc.)

March 9, 2013

6

142 attendees

Employee Discipline and Grievance Management for SM's and DM's

To learn the prinicples of Employee Discipline and Grievance

Management in the Workplace.

3

Facilitator:

Date of Training:

No. of Sessions:

Participants:

Atty. Josephus Jimenez

October 24, 2013

2

70 attendees

Standard First Aid and Basic Life Support Training

To enable participants to practice

standard First Aid and CPR as well as

to develop and enhance the skills and

knowledge in administering first aid to

any injured/ill person in emergency

situations.

9

Facilitator:

Date of Training:

No. of Sessions:

Participants:

Philippine Red Cross

March 11-15, 2013

3

130 attendees

EMS Legal RequirementsTo familiarize the participants on the

Environmental Management System

(EMS) legal requirements and to

update them with the latest and/or

additional legal requirements.

6

Facilitator:

Date of Training:

No. of Sessions:

Participants:

Roy Alminanza (TUV Rheinland Philippines, Inc.)

February 27, 2013

1

30 attendees

Emergency Preparedness TrainingParticipants can explain the role of every EPR Members and

employees in preparing for Emergency, identify various

emergency planning and response elements. Discuss the

disaster / emergency procedures for specific emergencies and

to demonstrate the procedures in responding to different

emergencies.

10

Facilitator:

Date of Training:

No. of Sessions:

Participants:

Synerquest Management Consultancy Services Inc.

September 12-13, 2013

2

74 attendees

OHSAS Legal Requirements and UpdatesTo familiarize the participants on the

legal aspects of the Occupational

Safety and Health Management

System.

4

Facilitator:

Date of Training:

No. of Sessions:

Participants:

TUV Rheinland Philippines Inc.

April 5, 2013

1

28 attendees

OHSAS 18001 Internal Auditing CourseTo develop internal auditors who can competently assess the

effective implementation of the organization's Management

Systems.

5

Facilitator:

Date of Training:

No. of Sessions:

Participants:

TUV Nord Philippines Inc.

March 6, 2013

1

25 attendees

ISO/TS 16949:2009 Awareness SeminarTo obtain a working knowledge of the ISO/TS 16949 : 2009 and

be equipped with the valuable information necessary to

implement its requirements.

7

Facilitator:Date of Training:No. of Sessions: Participants:

TUV Nord Philippines Inc.July 4, 20131

30 attendees

ISO 19011 : 2011 Internal Auditing Course (ISO/TS 16949:2009)

To develop Internal Auditors who can competently assess the

effective implementation of the Organization's Automotive

Quality Management System.

8

Facilitator:Date of Training:No. of Sessions: Participants:

TUV Nord Philippines Inc.July 16-17, 20131

30 attendees


LABOR-MANAGEMENT COUNCIL: BUILDING PARTNERSHIP THROUGH SHARED RESPONSIBILITIESYokohama Tire Philippines, Inc. – Labor Management Council (YTPI-LMC) gears towards developing a stronger

corporate culture by facilitating different employee-centered activities.

Employee participation and support indicate the success of each company event. This also shows that the top

management values its people by engaging them in company-wide affairs. As a result, these activities uplift the

morale and increase commitment of every employee.

Sportsfest This activity aims to narrow the gap, build-up team work,

and boost camaraderie between employees through sports.

1

Company OutingThe company considers the well-

being and enjoyment of each

employee. Going out-of-town

enables each everyone to de-

stress, have a sense of

relaxation, and wind down at the

beach together with their co-

workers.

2

Family DayAs YTPI also considers the importance of the family as the

basic foundation of each community, the company always

pushes every year to celebrate the Family Day. YTPI's Family

Day is held last Aug. 21-22, 2013 at Villa Alfredo's Resort,

San Fernando, Pampanga. For most employees, this is also

an opportunity to enjoy quality time with their loved ones.

3

Christmas PartyYTPI concluded the year 2013 with a plant-wide Christmas

celebration headed by the LMC last December 23, 2013.

Savings from all the company Christmas events

(PHP700,000.00) were also donated to Phil. Red Cross

(PRC) and World Vision last Dec. 26, 2013, to assist in their

relief operations for typhoon Yolanda victims.

4

February Blood LettingTarget Actual

45donors

53donors

June Blood LettingTarget Actual

45donors

63donors

Annual Company-Wide Events

LMC Plant-wide ElectionsYTPI's Labor and Management Council (LMC) deliberated

its new set of officers after the plant-wide election held last

October 2-4, 2013. The newly-elected LMC officers

assumed their respective positions beginning January

2014.

Phillip GamboaLMC Chairman

Ma. Lourdes CajesLMC Vice-Chairwoman

Sonny GuzmanCCTB Committee

Head

James SanchezIBW Committee

Head

Giovanni TrinidadYPS Committee

Head

2013-2014 LMC Officers

Bloodletting ProgramIn partnership with the Philippine Red Cross (PRC), LMC

encourages YTPI employees to donate blood for potential

beneficiaries, promoting volunteerism. Bloodletting

program is conducted three times a year: the actual

number of participants in every bloodletting activity has

exceeded the number target for 2013.



We value the interests of our customers by focusing our

efforts on providing their exacting needs and high

standards. We believe that by putting value on the

products we produce is a manifestation of our

dedication in satisfying our customers and our drive in

putting their interests first on our list.

Customers

Our StakeholdersFollowing the incorporation of our CSR in our

organizational structure, we organized the social

responsibility issues we need to address in our daily

and future activities. This defines the plan of activities

that our company will undertake and determine its

impact on sustainability.

We highly encourage employee participation in our

activities. Their involvement promotes a culture of

volunteerism which is a demonstration of CSR's

effectiveness and proactivity.

Employees

Through partnerships with the local communities, we

are able to execute and accomplish projects that bear

significant impact on their own development. By

working hand-in-hand, we can create a sustainable

society that cares for nature and people.

Local Communities

We continuously communicate our activities with our

Business Partners to encourage them in following our

initiatives and to inspire them to support our CSR

activities through active participation or voluntary

donation.

Business Partners and Suppliers


About this ReportWe are pleased to release the Annual Sustainability

Report 2013. We take pride in this year with notable

milestones and initiatives that are being carried on

based on our CSR framework of running a good

business that is committed to contribute to social

development and environmental protection.

Every effort has been taken to ensure the accuracy of

its contents and all the information herein. Should you

have concerns in this report, please let me know

through the numbers below.

Angelina C. CasasolaVice-President

CSR & Business Operations Department Manager

Email: [email protected]

Tel: +63(45) 599-3603

Fax: +63(45) 599-3613

YTPI-CSR Report Committee

Steering Committee

Tadashi SuzukiPresident and CEO

Angelina CasasolaVP-CSR and Business Operations Department Manager

Allan LavariasVP-QA and Technology Department Manager

Joanne PangilinanPublic Relations and General Services Section Manager

Geraldine BautistaHuman Resource Management 1Section Manager

Technical Working Group (TWG)

Patrick PinedaRaliegh Lugtu

Public Relations and Gen. Services Section

Vien PinedaRochelle Parales

Environment Management Section

Eden Canlas Cost Planning Section

Rolly Gantan Quality Assurance Section

Christy David Safety Management Section

Mary Sharon San JuanAimee SapnuEssel Macaspac

Human Resource Management 1 Section

Christian Recio Human Resource Management 2 Section

Ma. Teresita Nantes Purchasing Section

Michael Palima Mechanical Maintenance Section

Joseph Maniti Mixing Process - Manufacturing 1

Nimbrad Jacinto Curing Process - Manufacturing 2

Masahiro YukiExecutive Vice-PresidentAdmin Division Manager

Phillip Gamboa Labor Management Council

Members:

Rommel PanergoManufacturing 2 Department Manager

Marilou PenianoCorporate Planning Department Manager

Rodel DuralManufacturing 1 Department Manager

Adelo FenomenoEngineering and MaintenanceDepartment Manager

Reynaldo MandocdocCorporate PlanningAsst. Department Manager

Liza ArrietaSafety Management Section Manager

Reynante LegionEnvironment Management Section Manager

Egelberto DoloHuman Resource Management 2Section Managerer

Carol PanergoPurchasing Section Manager

Jeffrey PolicarpioQuality Assurance Section Manager

Advisers:

Leader:

Members:

Environment friendly, healthy and safe approach to reporting

Soy ink was used in printing this report. Soy ink contains non-toxic soybean oil and are low in Volatile Organic Compounds (VOC’s). Soy inks are safe, sustainable, made from a renewable resource and are more easily stripped from paper during the de-inking and recycling process than petroleum inks.

INK

Papers used in this report were made of highest post-consumer waste fibers and are acid free. In addition 100% of the electricity used to manufacture this grade is offset by Green-e certified wind certificates.

PAPER

Lay-out Artist: Patrick P. Pineda

CSR Report 2013 (for PDF)

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